Cloud on horizon: New state fuel taxes

Anchorage’s Ted Stevens International Airport could see a boomlet in air cargo construction starting next year with about $700 million in projects planned including expansions by UPS and Federal Express, which now operate cargo-sorting hubs at Anchorage’s airport. Much of this is tied to international air cargo, mainly North America-Asia, and what’s interesting is the big cargo operators obviously assume the China-U.S. trade war will be resolved. Also interesting is that there doesn’t seem to be any concern about tariffs on fuel imports being raised at the Port of Anchorage to help the port pay for repairs to the Petroleum and Cement Terminal, a project now underway.

Here’s one cloud on the horizon to watch, however: It now seems likely the state Legislature will move to increase state motor fuel taxes next spring as a token gesture toward new revenues (the state is under pressire. Including from debt rating agenies, to broaden its revenue base) but legislators from highway-commuting districts like Mat-Su will want the discussion broadened from motor fuel taxes to state aviation fuel taxes including taxes on jet fuel sold at Anchorage’s airport. Some of these projects, except for UPS and FedEx, are still speculative, but if all are built it could create as many as 1,500 jobs in construction.